GAC’s Big Challenge

The GAC GS8 won top spot last year in the large SUV category in J.D. Power’s Chinese brand segment.

There is reason to believe that the Golden Age for Chinese cars is just around the corner. And that’s a subtle way of saying GAC.

In the Philippines, GAC is still a very young brand trying to find its way to market acceptance. But GAC Motor Co., Ltd. and its Philippine distributor Legado Motors Inc. (LMI), the Philippine distributor of GAC vehicles are making sure they’re making the right moves.

Legado recently brought motoring journalists to Guangzhou to visit GAC’s various plants and facilities, including its new energy EV manufacturing plant.

GAC Motor and its parent company Guangzhou Automobile Group Co., Ltd. (GAC Group) traces its roots in automobile manufacturing when it entered into a joint venture with French automobile brand Peugeot in the 1986 to manufacture Peugeot 505SX sedans. It was officially established in 2007 and was the first state-owned automaker to be listed in both the Hong Kong and Shanghai Stock Exchange. Today, it has become one of the most fully integrated automakers in China as it is also engaged in the manufacture of motorcycles, as well as other related fields including financial leasing and insurance.

Its R&D Center, manned by 4,000 employees, is fully equipped to handle various types of research, testing and even recruitment programs for international experts. The center files over 500 patent applications annually, with patent applications exceeding 3,000 so far.
In the keen competition among a multitude brands, making your cars desirable is key.

Zhang Fan, VP and Head of Design who also runs the GAC R&D facilities, is the man tasked to steer GAC to this direction. Fan joined GAC after an 8-year stint with the design division of Mercedes-Benz, and was the one who penned the third generation Mercedes-Benz SLK, previous generation A-class, and SL-class sports car. He fondly remembers his friendship with his Filipino colleague Wini Camacho during his years with Mercedes-Benz. Camacho worked with Fan in the design department and was responsible in the design of the Mercedes-Benz X-class concept vehicle.

“GAC has benefited from its joint venture partnerships with Toyota and Honda, and has learned a lot in terms of how to build high quality cars. But aside from building high quality cars, your cars have to be desirable,” said Fan.

“If you concentrate on being local, you will not be big. Being international is the key strategy.”

He was referring to GAC’s growth strategy, by investing heavily on R&D to make sure GAC cars are of good quality and designed to be desirable so it will attract buyers, and GAC car owners will take pride in driving their cars on the road. “Making GAC cars desirable is my job.”

He also added that the Filipino market is very important to GAC, noting PH’s robust economy and market potential.

Zhang Fan and his R&D team with a GAC concept car

When asked what is his favorite GAC model, Fan jested: “my favorite GAC car is the next one,” adding that the design language of the current generation and future generation GAC cars will have what he calls the “flying dynamics” design language. His designs are made to mimic an eagle taking off, by shaping the car with complex light and shadow features.

Aside from the current internal combustion engine (ICE) model line up, GAC intends to heavily invest in electric vehicles (EV). After years of development, GAC is now confident on its new energy vehicle program with its EV and Plug-in Hybrid (PHEV) cars. Two years ago, it launched its GA3S PHEV and GS4 PHEV, and a full EV GE3 SUV model. This year, it will have its Aion S and Aion LX EV models to be produced in its fully automated electric vehicle manufacturing plant. With a range of over 500 km, and very quick acceleration, it promises a new genre of affordable and
desirable EV cars within affordable reach.

On the local market, GAC is being distributed by Legado Motors led by politician businessman Luis “Chavit” Singson. Just like his political career, his knack for timing couldn’t be more perfect. Chinese branded vehicles are staging a comeback, after a couple of failed brands some 10 years ago or so, there are more and more Chinese-made and Chinese-branded vehicle populating the traffic these days, and the car-buying market is now more confident in trying out these unconventional brands, but with more careful discernment.

That is why Legado is offering a 5-year (or 100,000 km) warranty on its GAC vehicles. GAC is pricing its vehicles very competitively and is providing car buyers a more affordable choice, backed up by an unprecedented warranty. With four GAC dealerships coming up soon, we can surely expect to see more GAC cars on the road.